Companies to develop new game apps featuring Nintendo IP for smart devices and a new multi-device membership service

TOKYO, JAPAN - March 17, 2015 - Nintendo Co., Ltd. (Tokyo: 7974) and DeNA Co., Ltd. (Tokyo: 2432) today entered into a business and capital alliance to develop and operate new game apps for smart devices and build a new multi-device membership service for consumers worldwide.

Leveraging the strength of Nintendo's intellectual property (IP) and game development skills in combination with DeNA's world-class expertise in mobile games, both companies will develop and operate new game apps based on Nintendo's IP, including its iconic game characters, for smart devices. The alliance is intended to complement Nintendo's dedicated video game systems business and extend Nintendo's reach into the vast market of smart device users worldwide. Under the alliance, DeNA will also be able to strengthen its gaming business at a global scale by leveraging Nintendo's IP. To ensure the quality of game experience that consumers expect from this alliance of Nintendo and DeNA, only new original games optimized for smart device functionality will be created, rather than porting games created specifically for the Wii U home console or the Nintendo 3DS portable system.

In order to create completely new game experiences for smart devices, all Nintendo IP will be eligible for development and exploration by the alliance. As these consumers enjoy the unique kind of gameplay found only with Nintendo, they will have the opportunity to explore even more premium experiences on Nintendo's dedicated video game platforms. Information on upcoming games and availability will be forthcoming.

Nintendo and DeNA also plan to develop an online membership service that is accessible from smart devices, PC and Nintendo systems, such as the Nintendo 3DS portable system and the Wii U home console. The membership service, which is targeted to launch in the fall of 2015, will be built on DeNA's extensive experience and capabilities in online membership services.

As part of the long-term relationship and commitment by each company, Nintendo and DeNA have also agreed to form a capital alliance. Under the capital alliance, Nintendo will acquire 15,081,000 of DeNA's treasury shares, which corresponds to 10.00 percent of its total outstanding stock, for a total of approximately 22 billion yen. DeNA will simultaneously acquire 1,759,400 of Nintendo's treasury shares, which corresponds to 1.24 percent of its outstanding stock, for a total of approximately 22 billion yen. The payment is due April 2, 2015.

About NintendoThe worldwide pioneer in the creation of interactive entertainment, Nintendo Co., Ltd., of Kyoto, Japan, manufactures and markets hardware and software for its Wii U™ and Wii™ home consoles, and Nintendo 3DS™ and Nintendo DS™ families of portable systems. Since 1983, when it launched the Nintendo Entertainment System™, Nintendo has sold more than 4.3 billion video games and more than 680 million hardware units globally, including the current-generation Wii U, Nintendo 3DS and Nintendo 3DS XL, as well as the Game Boy™, Game Boy Advance, Nintendo DS, Nintendo DSi™ and Nintendo DSi XL™, Super NES™, Nintendo 64™, Nintendo GameCube™ and Wii systems. It has also created industry icons that have become well-known, household names such as Mario™, Donkey Kong™, Metroid™, Zelda™ and Pokémon™. A wholly owned subsidiary, Nintendo of America Inc., based in Redmond, Wash., serves as headquarters for Nintendo’s operations in the Western Hemisphere. For more information about Nintendo, please visit the company’s website at http://www.nintendo.com.

About DeNADeNA (pronounced “D-N-A”) is a global Internet company that develops and operates a broad range of mobile and online services including games, e-commerce and other diversified offerings. Founded in 1999, DeNA is headquartered in Tokyo with offices and game development studios across the globe. DeNA Co., Ltd. is listed on the Tokyo Stock Exchange (2432). For more information, visit: dena.com

During a Q&A at a joint press event with DeNA, Nintendo president Satoru Iwata confirmed that this new membership service will include a new royalty program to replace Club Nintendo, which shut down in January. While specifics were not shared on this front, Iwata has provided examples in the past of how the royalty program will allow discounts for frequent purchasers of games on Nintendo platforms.

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Hopefully they figure out how to make the quality of game not drop as a result of smart devices being touchscreen-only, though seeing the DS games that did it right like Canvas Curse makes me less wary.

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I don't use smartphones or mobile (I haaate touch screens), so this won't effect me. But of all the devs out there to tackle mobile games, Nintendo's probably got a pretty good chance of doing it right...